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Edited version of private advice
Authorisation Number: 1051613832008
Date of advice: 27 November 2019
Ruling
Subject: Replacement asset roll-over - original asset compulsorily acquired
Question
Will the Commissioner exercise the discretion available under subsection 124-75(3) of the Income Tax Assessment Act 1997 to allow you further time until 30 June 2021 to incur expenditure in acquiring a replacement CGT asset following the compulsory acquisition of your original CGT asset?
Answer
Yes. Having considered your circumstances and the relevant factors the Commissioner will allow you further time to incur expenditure in acquiring a replacement CGT asset. Further information can be found by searching 'QC 17204' on ato.gov.au
This ruling applies for the following periods
Year ended 30 June 2018
Year ended 30 June 2019
Year ended 30 June 2020
Year ended 30 June 2021
The scheme commenced on
1 July 2017
Relevant facts and circumstances
A CGT asset of yours was compulsorily acquired by an Australian government agency.
You intended to elect CGT roll-over relief with respect to the compulsory acquisition by purchasing one or more replacement CGT assets of sufficient value to cover the proceeds of the compulsory acquired CGT asset.
A replacement CGT asset was identified with an agreement to purchase being entered into. It was expected that this CGT asset would be purchased forthwith and that roll-over relief would be applied with respect to the compulsory acquisition and the subsequent purchase of replacement assets.
You incurred delays in acquiring a replacement CGT asset during which you experienced also health issues.
You have overcome your health issues and are now seriously looking for a replacement CGT asset.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 124-70
Income Tax Assessment Act 1997 section 124-75